Commonwealth LNG, the export venture proposed for Cameron Parish in the US Gulf Coast state of Louisiana, has been informed by the Federal Energy Regulatory Commission of the launch of an environmental impact statement (EIS) process with firm deadlines.

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Thursday, 12 July 2018 04:41

US natural gas demand

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July 12 (LNGJ) - Feed-gas for US liquefied natural gas exports is competing with rising domestic demand from natural gas-fired power plants. US electricity generation this summer (June, July, and August) is expected to be close to last year’s summer record, according to the Energy Information Administration. “The share of electricity generation supplied by natural gas-fired power plants has increased over the past decade, while the share supplied by coal has fallen, primarily as a result of sustained low natural gas prices, increases in natural gas-fired capacity and retirements of coal-fired generating capacity,” said the EIA. “Over the three-year period from 2015 to 2017, the cost of natural gas delivered to electric generators averaged $3.16 per million British thermal units (MMBtu), compared with $7.69/MMBtu between 2006 and 2008,” it added.

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The US expects rising natural gas production will support the forecast surge in LNG and pipeline exports in next 12 months as well as re-establishing storage levels after the smallest April injections for inventories since 1983.

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Federal Energy Regulatory Commission Chairman Kevin J. McIntyre and his four Commissioners appeared before the House Committee on Energy and Commerce for a general oversight hearing amid plans for natural gas pipeline policy changes.

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US domestic natural gas consumption dropped by 5 percent during the week and prices were mixed as LNG exports remained flat and average net pipeline imports from Canada decreased by 2 percent.

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As US LNG exports gather pace over the next year, the US government said the nation’s dry natural gas production will average 81.7 billion cubic feet per day, establishing a new high and that level would be 8.1 Bcf/d higher than in 2017 and the highest annual average growth on record.

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US LNG exports increased in the past week with six LNG carriers departing the Sabine Pass plant in Louisiana while another was lifting a cargo as overall US consumption of natural gas rose by 13 percent.

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